Fix & Flip — Investor's Guide

Fast capital for
value-add deals.

Fix and flip bridge loans are built for speed — borrow against purchase and rehab costs, sell or refinance, repay. No long-term mortgage, no conventional income hoops.

7 min read Updated 2025 Includes deal analyzer
What It Is

Built for deals with a
clear exit strategy.

A fix and flip bridge loan is short-term financing designed for one purpose: fund the acquisition and renovation of a property, then get repaid when you sell or refinance. It's not a 30-year mortgage — it's a tool for a specific deal lifecycle.

Lenders underwrite these loans on asset value, not personal income. What matters is the property — purchase price, rehab scope, and the after-repair value (ARV). If the deal pencils at the ARV, the loan works. Your W2 is largely irrelevant.

The core metric: Lenders look at LTC (Loan-to-Cost) — the total loan amount divided by total project cost (purchase + rehab). They also look at LTV against ARV. The lower both ratios, the more equity cushion in the deal.

Fix and flip bridge loans are structured as Business Purpose Loans — borrowed through your LLC against an investment property with a defined business purpose. This is what enables the speed and flexibility that conventional mortgages can't offer.

90%
Max purchase LTV
typical programs
100%
Rehab costs
often covered
10 days
Minimum close
experienced investors
Deal Analyzer

Does your flip
pencil?

Run your numbers before submitting. This gives you a quick read on total project cost, cost-to-value, and gross profit. Illustrative only — actual terms depend on your full scenario.

Fix & Flip Analyzer
Enter purchase price, rehab budget, and ARV to analyze the deal.

ARV = After Repair Value — what the property is worth once renovations are complete. Use comparable sales or a broker's estimate if you don't have an appraisal yet.

Underwriting

What lenders actually
care about.

Fix and flip underwriting is deal-first. Here's how a lender looks at a value-add scenario:

1
The ARV — after repair value

Everything flows from the ARV. Lenders want to know what the property is worth after renovation, because that's the collateral they're underwriting against. A strong ARV with a well-supported purchase price makes the deal. A weak or unsupported ARV kills it.

2
Loan-to-cost and loan-to-ARV ratios

LTC is the total loan divided by total project cost (purchase + rehab). LTV-to-ARV is the loan divided by the finished value. Most programs want LTC under 90% and LTV-to-ARV under 70–75%. The more equity in the deal relative to ARV, the cleaner the approval.

3
Rehab scope and experience

Lenders look at the rehab budget relative to the ARV lift. A $40k rehab that creates $120k in value is a strong story. A $100k rehab on a property that appreciates $80k raises questions. Experience matters too — investors with a track record of completed flips get more favorable terms and faster decisions.

4
Exit strategy clarity

Sell or refinance — lenders want to know your plan. A sale exit is straightforward. A refinance-to-rental exit (often called "BRRRR") requires showing the property will support a DSCR rental loan once renovated. Either is fine — just have a clear answer.

Have a deal in mind? Submit the property, purchase price, rehab estimate, and ARV. We'll tell you how the numbers look and what structure fits.

Submit My Deal →
Real Example

What a funded flip
looks like.

Scenario — First-Time Flipper, Strong Deal
Tony found a distressed SFR at $220k in a neighborhood with $380k comps.

Tony has one completed flip under his belt. He found a single-family home listed below market — motivated seller, deferred maintenance, priced to move. Comparable renovated sales in the area are coming in around $380k.

His rehab estimate is $65k for cosmetic work plus a kitchen update. Total project cost: $285k. ARV: $380k. LTC: 75%. LTV-to-ARV: 68% on a 90% purchase loan. The numbers work.

He submitted the deal with the address, his numbers, and his LLC docs. Preliminary terms came back within 24 hours. He closed in 17 days — before the competing cash offer could get their proof of funds together.

$285k Total project cost
$380k ARV
17 days Time to close
FAQ

Questions investors
actually ask.

Do I need experience to get a fix and flip loan? +
Experience helps — lenders feel more confident when you've completed flips before. But many programs work with first-time or limited-experience investors when the deal numbers are strong. A lower LTC, a well-supported ARV, and a clear rehab plan go a long way toward offsetting limited track record. Don't assume you're disqualified without asking.
Does my personal income matter? +
Fix and flip bridge loans are underwritten primarily on the deal — purchase price, rehab, ARV. Personal income is not the driving factor. A soft or hard credit pull on the entity principals is standard, but the property and the deal structure carry far more weight than your W2 or tax returns.
What if I want to rent after renovating instead of selling? +
This is called BRRRR — Buy, Rehab, Rent, Refinance, Repeat. You take out a bridge loan to acquire and renovate, then refinance into a long-term DSCR rental loan once it's complete and tenanted. It's a common and effective strategy. The key is making sure the renovated property will support a DSCR rental loan — run the numbers on both the flip and the eventual rental before you commit.
How long is a typical fix and flip loan term? +
Most bridge loans are 6–18 months, with 12 months being common. Extensions are often available if the project runs long — though having a realistic timeline from the start is important. The loan is interest-only during the term, which keeps monthly carrying costs lower while the property is being renovated.
Is fix and flip financing available in my state? +
Yes — fix and flip bridge lending is available nationwide. We originate directly in select markets and broker to lender partners everywhere else. Submit your deal with the property state and we'll route it to the right structure and the right lender for that market.
Ready to move?

Have a deal?
Let's look at it.

Submit your flip scenario — property, purchase price, rehab estimate, ARV. We'll give you a straight read on whether the deal works and what structure fits.

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